How the Project Finance Market Can Profit From Renewable Energy
In the late 1950’s and early 1960’s, the modern technology sector began its life. Unfortunately, the innovation was there, but the capital market funding wasn’t. So, in 1961, Arthur Rock raised $3.5 million from 25 limited partners and formed a venture capital fund. The rest is history. A similar void and opportunity exists today in the world of project finance. To put it simply: there’s very little financing available for projects that employ new technology in the fast-moving and fast-growing renewable energy sector. It’s true that the government is helping to fund projects in this area, but public-sector money, on its own, is hardly a long-term solution. To supplement and solidify these efforts, I believe we need to create the equivalent of a junk bond or venture capital market for renewable energy project finance.
